Wall Street Extends Losses in the Final Session of a Record Year
As the year draws to a close, Wall Street appears poised to finish 2025 with record gains despite ending it with a modest pullback.
Quick overview
- U.S. equities are trading normally as Wall Street concludes a record-setting year, primarily driven by technology stocks.
- Major indexes experienced slight declines in the final trading session of 2025, but the markets are set to finish the year on a strong note.
- Easing trade tensions and strong performance from AI-related technology stocks contributed to the recovery of U.S. equities, which reached record highs.
- Notable performers included NVIDIA, which became the first company to hit a $5 trillion market cap, and Alphabet, which surged over 65% this year.
U.S. equities are among the few major markets trading normally on Wednesday, December 31, as Wall Street closes out a record-setting year dominated by technology stocks.
Major indexes are edging lower in the final trading session of 2025. Despite recent declines, markets are on track to end the year on a solid footing after months of volatility driven by tariff uncertainty under U.S. President Donald Trump and an unprecedented surge of enthusiasm surrounding artificial intelligence.
By mid-session, the S&P 500 was down 0.18%, while the tech-heavy Nasdaq Composite slipped 0.17%. The Dow Jones Industrial Average was also lower, falling 0.20%.
A Volatile but Profitable Year
Wall Street’s annual performance was initially expected to lag the strong gains of the previous two years. In April, Trump’s so-called “Liberation Day” tariffs triggered a sharp sell-off in global markets, clouding the outlook for monetary policy in the world’s largest economy and pushing investors away from U.S. equities early in the year.
However, easing trade tensions—combined with strong gains in AI-related technology stocks and interest-rate cuts by the Federal Reserve—helped markets recover. U.S. equities have since returned to record highs, with technology stocks leading the advance.
Among the standout performers was NVIDIA, which gained 13.6% this year and became the first publicly traded company to reach a market capitalization of $5 trillion. The rally was fueled by continued demand for AI chips and data-center infrastructure.
Another major winner was Alphabet, which surged more than 65%, putting it on track for its best annual performance since 2009. The stock benefited from multiple catalysts, including major AI partnerships, a $4.9 billion investment from Berkshire Hathaway, and a favorable ruling in a high-profile antitrust case.
As the year draws to a close, Wall Street appears poised to finish 2025 with record gains—despite ending it with a modest pullback—underscoring the dominant role of technology and artificial intelligence in shaping market leadership.
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